Torrent Power Limited announced its quarterly results for the quarter ended December 31, 2025, delivering exceptional financial performance with significant growth across key metrics. The Board of Directors approved the unaudited financial results alongside strategic decisions including dividend declaration and fundraising initiatives. The company also released a comprehensive investor presentation outlining its operational performance and future growth strategy.

Consolidated Financial Performance

The company's consolidated results for Q3FY26 demonstrated robust operational efficiency with substantial improvements in profitability metrics.

Standalone Results Highlight Strong Growth

The standalone financial results showcased even more impressive growth metrics, reflecting the company's core operational strength.

Nine-Month Performance Analysis

The year-to-date performance for the nine months ended December 31, 2025, demonstrated consistent operational improvements across both standalone and consolidated metrics.

Board Decisions and Strategic Initiatives

The Board of Directors, in their meeting held on February 10, 2026, approved several key decisions reflecting strong financial position and growth strategy.

Operational Excellence and Growth Strategy

The company operates as an integrated power utility with a total generation capacity of 5,039 MWp, positioning itself for significant expansion. The operational capacity is estimated to grow from approximately 5.0 GWp to 10.6 GWp backed by robust renewable capacity addition. The company maintains distribution losses of just 2.34% for licensed power distribution areas with power availability of 99.9%, demonstrating operational excellence.

Future Growth Pipeline

Torrent Power has outlined an ambitious expansion plan with projects under development totaling 5,604 MWp. The company is developing a 1,600 MW ultra-supercritical coal-based power project in Madhya Pradesh with an estimated cost of ₹22,000 crore. Additionally, the company is pursuing pumped storage hydro projects with 3 GW under development in Maharashtra and a total planned capacity of 8.4 GW across Maharashtra and Uttar Pradesh.

The renewable energy pipeline includes multiple projects across wind and solar technologies with various off-takers including SECI, MSEDCL, and merchant sales. The company has also been awarded transmission projects for power evacuation, strengthening its integrated utility model.

Torrent Power Limited has received comprehensive credit rating actions from CRISIL Ratings, reinforcing its strong position in the power sector. The rating agency has reaffirmed existing ratings and assigned new ratings to proposed debt instruments, reflecting the company's robust operational performance and strategic expansion capabilities.

CRISIL Rating Actions and Instrument Details

CRISIL Ratings has reaffirmed the long-term credit rating of existing non-convertible debentures and bank loan facilities amounting to ₹3140 crore at CRISIL AA+/Stable and assigned the same rating to proposed NCDs worth ₹2000 crore. The rating agency has also reaffirmed short-term bank loan facilities and commercial paper at CRISIL A1+.

Strong Financial Performance and Improved Leverage

The ratings reflect Torrent Power's strong financial risk profile, with net debt to EBITDA ratio improving significantly to 1.40 times as of March 31, 2025, from 2.20 times in the previous year. This improvement was driven by increased EBITDA to ₹5,436 crore from ₹4,632 crore in fiscal 2024, supported by robust power demand and strategic debt reduction.

Exceptional Distribution Business Performance

Torrent Power's distribution business continues to demonstrate outstanding operational efficiency with industry-leading low transmission and distribution (T&D) losses across its licensed and franchise areas. The company serves over 4.20 million consumers across diverse segments.

T&D Loss Performance (FY25)

The franchise areas showed significant improvement, particularly SMK which reduced T&D losses from 44.90% at takeover in fiscal 2021 to 28.00% in fiscal 2025.

Ambitious Expansion Portfolio and Capital Allocation

Torrent Power has outlined an extensive expansion plan with estimated capex exceeding ₹60,000 crore during fiscal 2026-2032, to be funded through a debt-equity ratio of 70:30 or 75:25. The diversified portfolio includes strategic projects across renewable energy, pumped storage, and thermal power.

Major Projects Under Development

The renewable projects benefit from long-term PPAs with reputable counterparties, while the pumped storage project has a 40-year Energy Storage Facility Agreement with MSEDCL providing strong revenue visibility.

Regulated Business Model and ESG Excellence

The company's ratings benefit from its regulated cost-plus model in distribution and generation assets, allowing 14-15.50% post-tax return on equity. Regulated businesses account for approximately 70% of EBITDA, providing stable cash flow generation. The company demonstrates strong ESG credentials with renewable capacity representing over 61% of total generation capacity.

ESG Performance Highlights

Rating Outlook and Liquidity Position

The stable outlook reflects CRISIL's expectation of continued strong business performance and prudent capital allocation. The company maintains strong liquidity with expected annual cash accrual of ₹3,200-3,700 crore in fiscals 2026-2028, comfortably covering term debt obligations of ₹1,300-1,700 crore yearly.

Torrent Power's liquidity position remains robust with cash balance of ₹1,903 crore as of September 30, 2025, and unutilized fund-based limits of ₹1,500 crore. While net leverage is expected to increase with the sizeable capex program, potentially peaking above 4.00 times in fiscals 2029-2030, enhanced cash generation from newly commissioned capacity should support moderation thereafter.